LRT-2 revenue, ridership up in 2 months

April 10, 2024 | 12:00am

MANILA, Philippines — The Light Rail Transit Authority (LRTA) grew its revenue collection by double digits in the first two months of the year, reaping the benefits of recovering ridership at the Light Rail Transit Line 2 (LRT-2).

Latest data from the LRTA showed that its fare collection rose by 39 percent to P222.43 million in the two months to February from P160.46 million a year ago.

Against pre-pandemic levels, the amount exceeded by eight percent the P205.32 million that the LRTA raised during the same period in 2019.

The LRT-2, operated by the LRTA, recorded a 19 percent jump in passenger volume to 9.24 million in January and February, from 7.77 million a year earlier. The LRT-2 facilitated the travel of 10.64 million commuters in the first two months of 2019.

The LRT-2 observed a 56 percent spike in passenger footprint to 49.43 million in 2023, marking the highest ridership for the railway since the pandemic. The LRTA attributed the surge to the resumption of onsite classes, benefiting LRT-2 that traverses the University Belt.

For 2024, the LRTA projects LRT-2 ridership to balloon to 50.7 million, confident that the return of in-person schooling and work will further increase the demand for mass transit.

Financially, the LRTA improved its revenue by more than half to P1.65 billion in 2023, made up of P1.09 billion in passenger fares and P553.57 million in non-rail earnings.

The LRTA is relying on the recent adjustments in LRT-2 fares to increase its revenue, especially as it suffered a subsidy cut from the government this year.

The LRTA asked for a subsidy of P1.59 billion to fund its programs and projects for the LRT-2. However, the government approved a budget of just P864.4 million for the agency aligned with the strategy to consolidate finances in the pandemic aftermath.

With this, the LRTA has to generate as much revenue as it can to operate and maintain the LRT-2. In 2023 President Marcos approved fare increases for the LRT-2, allowing the LRTA to raise the boarding fee to a minimum of P13.29 and the distance fare to P1.21 per kilometer.

The LRTA hopes to expand the LRT-2 by three stops to the west of the Recto Station in a project that would push the railway toward Tutuban, Divisoria and Pier 4.

The extension will require a cost of P10.12 billion, and the government has yet to issue approval for the disbursement of such an amount.